Economy

Exports Drop As Trump’s Trade War Reality Sets In

JM Ashby
Written by JM Ashby

The economy grew at an annualized rate of over 4 percent during the second quarter of the year because foreign and domestic companies raced to export as much as they could before Trump's trade war officially hit the books.

Trump's trade war is on the books now and exports have dropped as a result. Our trade deficit exploded to the highest level since Trump was elected during the month of June.

via Reuters:

The U.S. trade deficit recorded its biggest increase in more than 1-1/2 years in June as the boost to exports from soybean shipments faded and higher oil prices lifted the import bill.

The Commerce Department said on Friday the trade gap surged 7.3 percent to $46.3 billion. The rise in percentage terms was the biggest since November 2016. [...]

The government reported last Friday that trade contributed 1.06 percentage points to the economy’s 4.1 percent annualized growth pace in the second quarter.

Obviously, if trade contributed that much growth during the second quarter, and if Trump is doing everything he can to sabotage trade, we should not expect to see that much growth during the third quarter and perhaps not ever again. Trump is going to escalate his trade war.

If you think about it, this highlights how much of self-own protectionism truly is. The only difference between previous quarters and the next quarter will be Trump's trade war and the downsides of it are going to be obvious to anyone willing to look.

  • muselet

    Donald Trump is incapable of understanding the modern world. Trade wars could, up until the end of World War II, be sorta-kinda won, but no longer. As Badgerite says, there are lots of other countries to trade with, and lots of trade alliances to keep tariffs in check. The rest of the world doesn’t actually need the US.

    And after Trump starts a trade war with everyone else, they won’t want to trade with the US, either.

    –alopecia

  • Badgerite

    A further problem for the US is that trump is the only one engaging in trade wars with everyone else. Other countries are not involved in trade wars with each other. This means that the rest of the world, spurred on by trump’s idiocy, the rest of the world will engage in trade alliances while the US freezes itself out and attacks everyone but Russia. Other countries will have a cushion of trading partners to withstand any trade war. The US will not.

  • katanahamon

    From the Daily Beast…

    “Dems Are Better for the Economy. Why Won’t They Say So?
    ‘We’ve been better for the economy over the last 60 years, and here are the numbers that prove it’ sure does seem like a pretty good campaign line.

    Michael Tomasky
    MICHAEL TOMASKY
    08.03.18 9:40 AM ET”

    • Aynwrong

      Because it involves actual history and doesn’t neatly fit onto a bumper sticker or into a meme. Also, the media sucks at their job.

    • JMAshby

      One of the oldest tricks in the political media playbook is to ask why Democrats won’t say X or do Y even if they’re saying and doing both.

      With that said, Democrats can do a better job of communicating, but at the end of the day they can’t force television networks to cover their proposals and press conferences instead of Trump’s next Nuremberg rally.

  • Aynwrong

    Oh Trump voters…. The quarterly earnings on your investment just came in and apparently we’re all gonna get a piece of the action. Thanks a million.

  • katanahamon

    I went to send a late gift by UPS overnight, got it all packaged up and it wasn’t heavy or large by any means, and only 2-3 states away, and the guy says “that’ll be 185.00”…I said no, hows about second day air, he said “”120.00,”…so if you think fuel prices and prices in general aren’t going through the roof, as the emperor said “no…it is you who are mistaken….about a great..many..things…”. (No, I didn’t bother sending it.) Soon the economy will do all the teaching necessary to the Rump rubes, but unfortunately by then the damage will be catastrophic. This is what happens when you allow a failed, bankrupted, bitter, narcissistic, foreign power-compromised misogynist/racist with no knowledge of politics, history, geography, economics (or anything else) to play at being president.

  • simpfan

    The thing that economists said would happen actually happened? Go figure. Perhaps we should try listening to those guys.

    • katanahamon

      Nah..they’re “elitist librul globalists.”